Can my student loan relief expire?!
In a surprise to absolutely no one, scammers are trying to panic people into forking over money or valuable personal information in the name of student loan relief.
“I got a call that my student loan relief opportunity is going to expire soon. Is this legit?!”
NO!!
A couple of weeks ago, I mentioned in my “What you might’ve missed about student loan relief” newsletter that scammers are certainly coming. Welp, they’ve arrived.
According to a New York Times article, one such scam came from someone claiming to be in “student support” and purporting that the person receiving the call was “‘prequalified’ for ‘updated forgiveness,’ before cautioning that ‘it does look like your status will expire soon.’”
It’s quite possible you can get these calls without even having student loans or even if you’ve already paid them off.
This is nothing new. Scammers have been using student loans and associated programs as bait for years. Anytime there’s an update with a repayment plan or forgiveness program, these scams see an uptick. The Federal Trade Commission (FTC) does prosecute such scams, but it’s really on us as consumers to be vigilant.
What you should know to avoid falling for a scam
Relief isn’t going to expire soon.
The pause on payments until January 1, 2023 is automatic and you don’t need to opt-in or fill out any paperwork.
It’s a major red flag if anyone claims to be calling about your student loans and then asks for your Social Security number or student aid ID or asks for money.
There is currently no application for you to fill out right now, but its presumed one will be available in October.
You should always go directly to your student loan servicer portal and be suspicious about any call that comes in first. You can always say, “I’m going to hang up and call back the number that’s on my servicer’s website.” If the caller pushes back, then it’s a red flag.
Is there any information about how to apply for relief?
“Nearly 8 million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education,” according to StudentAid.gov
You can sign up to receive emails about “Federal Student Loan Borrowers Updates” from the Department of Education. Presumably, this email list will be alerted when the application for relief is available.
How long will it take to get the relief?
StudentAid.gov claims the process should take 4 to 6 weeks after the application is submitted.
It’s possible you’ll receive relief before the payment pause expires – but you’re encouraged to submit your application by November 15, 2022 in order to increase the odds of that happening. But let’s be honest, it’s probably going to be a deeply chaotic roll out. Let’s hope I’m proven wrong, but, if past is prologue…